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ARE NUMBERS AN ACCURATE INDICATOR?

Posted: June 25, 2013 by Edward Sanford

Sometimes it seems that numbers do not offer an accurate picture of the Nantucket real estate market. In 2006 and 2007, even though the total Nantucket real estate sales volume was running above $800 million, the Nantucket real estate market was headed for significant turmoil. Through the first five months of 2013 sales are off in every price category above $1,000,000 (I will ignore the single eight-figure transaction for this analysis).

nantucket real estate trends

For 2013 Nantucket real estate sales under $2 million still represent a significant portion of the total sales - almost 91%. The most noticeable drop in transactions has been in the $2 million to $4 million dollar segment, with a 71% decline year to date. Are these numbers suggesting that 2012 was an anomaly?

SOME POSITIVE INDICATORS

nantucket real estate reports

Despite the slowing Nantucket real estate sales numbers, Great Point Properties sees a strengthening sales environment. There are several interesting indicators:

  • The average sales price is now at 94% of asking price
  • The number of days on market has declined to 265 for sold properties
  • The number of houses for sale is down 30% from 2010. Each year has seen a decline in total inventory for sale
  • As a result price reductions have slowed, from 197 in 2010 to 48 for 2013.

In all, we still expect to see a healthy sales market, which will be a boom for sellers and a last chance for buyers. 2009 feels like a very distant memory today.

GPP